An Introduction

The pharmaceutical industry is embracing artificial intelligence technology (AI) to help in the research and development of new drugs as it is reputed to be up to 250 times more efficient than the traditional method of drug discovery holding the potential to reduce timelines for drug discovery, to increase accuracy of predictions on efficacy and safety as well as to create better, and more, opportunities to diversify drug pipelines (Source). In addition, Morgan Stanley believes that AI-powered drug discovery will lead to an additional 50 novel therapies being brought to market over the next decade, with annual sales in excess of $50 billion! In other words, a $50 billion AI drug discovery revolution is underway.

ABSI Catalysts

The above being said, however, the sector is very volatile and Absci (ABSI) was down substantially in August as a result of a 50% decline in revenue and a 16% decline in its net loss metric in Q2 vs, Q1. in addition, 3 of the 5 analysts who follow ABSI reduced their price targets by 9.4%, on average.

AI-focused Drug Discover Stocks Portfolio

ABSI is one of 5 constituent in our AI-focused Drug Discover Stocks Portfolio and below are how all 5 stocks performed in August, over the last 6 months, YTD and over the past year and a chart illustrating how the portfolio performed over those time periods:

Below is a table of the portfolio's performance returns over various time periods, and that of each constituent, and a chart snapshot of the portfolio's performance since the beginning of 2025.